Microsoft Corp
NASDAQ:MSFT

Watchlist Manager
Microsoft Corp Logo
Microsoft Corp
NASDAQ:MSFT
Watchlist
Price: 425.43 USD 1.25% Market Closed
Market Cap: 3.2T USD
Have any thoughts about
Microsoft Corp?
Write Note

Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

High Profitability Stocks
Technology Industry

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Microsoft Corp

Revenue
254.2B USD
Cost of Revenue
-77.9B USD
Gross Profit
176.3B USD
Operating Expenses
-63.2B USD
Operating Income
113.1B USD
Other Expenses
-22.6B USD
Net Income
90.5B USD

Margins Comparison
Microsoft Corp Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD
69%
44%
36%
US
Oracle Corp
NYSE:ORCL
516.4B USD
71%
31%
20%
US
ServiceNow Inc
NYSE:NOW
209.5B USD
79%
12%
13%
US
Palo Alto Networks Inc
NASDAQ:PANW
125.8B USD
74%
11%
32%
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
81.1B USD
75%
2%
5%
US
Fortinet Inc
NASDAQ:FTNT
63.9B USD
78%
26%
24%
US
VMware Inc
XETRA:BZF1
58B EUR
81%
14%
10%
US
Xperi Holding Corp
LSE:0M2A
54.6B USD
0%
33%
13%
US
Zscaler Inc
NASDAQ:ZS
30B USD
78%
-6%
-3%
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
19.5B USD
88%
35%
33%
US
Gen Digital Inc
NASDAQ:GEN
18.2B USD
80%
41%
16%
Country US
Market Cap 3.2T USD
Gross Margin
69%
Operating Margin
44%
Net Margin
36%
Country US
Market Cap 516.4B USD
Gross Margin
71%
Operating Margin
31%
Net Margin
20%
Country US
Market Cap 209.5B USD
Gross Margin
79%
Operating Margin
12%
Net Margin
13%
Country US
Market Cap 125.8B USD
Gross Margin
74%
Operating Margin
11%
Net Margin
32%
Country US
Market Cap 81.1B USD
Gross Margin
75%
Operating Margin
2%
Net Margin
5%
Country US
Market Cap 63.9B USD
Gross Margin
78%
Operating Margin
26%
Net Margin
24%
Country US
Market Cap 58B EUR
Gross Margin
81%
Operating Margin
14%
Net Margin
10%
Country US
Market Cap 54.6B USD
Gross Margin
0%
Operating Margin
33%
Net Margin
13%
Country US
Market Cap 30B USD
Gross Margin
78%
Operating Margin
-6%
Net Margin
-3%
Country IL
Market Cap 19.5B USD
Gross Margin
88%
Operating Margin
35%
Net Margin
33%
Country US
Market Cap 18.2B USD
Gross Margin
80%
Operating Margin
41%
Net Margin
16%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Microsoft Corp Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Microsoft Corp
NASDAQ:MSFT
3.2T USD
36%
19%
31%
26%
US
Oracle Corp
NYSE:ORCL
516.4B USD
166%
8%
15%
11%
US
ServiceNow Inc
NYSE:NOW
209.5B USD
16%
8%
12%
9%
US
Palo Alto Networks Inc
NASDAQ:PANW
125.8B USD
75%
15%
9%
16%
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
81.1B USD
7%
3%
1%
2%
US
Fortinet Inc
NASDAQ:FTNT
63.9B USD
431%
17%
35%
29%
US
VMware Inc
XETRA:BZF1
58B EUR
106%
5%
10%
6%
US
Xperi Holding Corp
LSE:0M2A
54.6B USD
14%
4%
12%
10%
US
Zscaler Inc
NASDAQ:ZS
30B USD
-6%
-1%
-7%
-13%
IL
Check Point Software Technologies Ltd
NASDAQ:CHKP
19.5B USD
30%
15%
23%
21%
US
Gen Digital Inc
NASDAQ:GEN
18.2B USD
28%
4%
13%
7%
Country US
Market Cap 3.2T USD
ROE
36%
ROA
19%
ROCE
31%
ROIC
26%
Country US
Market Cap 516.4B USD
ROE
166%
ROA
8%
ROCE
15%
ROIC
11%
Country US
Market Cap 209.5B USD
ROE
16%
ROA
8%
ROCE
12%
ROIC
9%
Country US
Market Cap 125.8B USD
ROE
75%
ROA
15%
ROCE
9%
ROIC
16%
Country US
Market Cap 81.1B USD
ROE
7%
ROA
3%
ROCE
1%
ROIC
2%
Country US
Market Cap 63.9B USD
ROE
431%
ROA
17%
ROCE
35%
ROIC
29%
Country US
Market Cap 58B EUR
ROE
106%
ROA
5%
ROCE
10%
ROIC
6%
Country US
Market Cap 54.6B USD
ROE
14%
ROA
4%
ROCE
12%
ROIC
10%
Country US
Market Cap 30B USD
ROE
-6%
ROA
-1%
ROCE
-7%
ROIC
-13%
Country IL
Market Cap 19.5B USD
ROE
30%
ROA
15%
ROCE
23%
ROIC
21%
Country US
Market Cap 18.2B USD
ROE
28%
ROA
4%
ROCE
13%
ROIC
7%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

Discover More
Back to Top